I used to be one of the many people who think that you have to have a lot of money to get started in real estate investing. But it's just not true! But on the other side we've all heard the gurus talk about how easy it is to invest in real estate with Other People's Money (OPM). But that's not entirely true either. What is true is that there are many ways to accumulate lots of money through real estate if you have the right team and are using the right strategies at the right time. The team is such an important piece of the puzzle - these are the people that are going to make each deal happen. Real Estate is a networking business, and I didn't say a NOT-work business. The more people you know, the easier it is to run your business. Period. When your team is in place is when your MBA starts accelerating. I have a lot of people on my team, and yes, that means I have to share the profits. But I can do more deals in less time with fewer headaches. Makes sense to me. This is one of the most important concepts for building wealth quickly. One that almost every type of guru out there tells us to do. But one that seems to get the most resistance. Many people want to do it themselves because they don't want to split the profits, or pay for the help. I'm telling you from experience that you need to do whatever you need to do to build your team. Contractors, lawyers, mentors, coaches, project managers, assistants, bookkeepers, CPAs, and the list goes on. I've paid for many coaches. I'm grateful that I have a mentor who is congruent with my own dreams. I've also created many joint ventures with other team players that have cost me nothing but my time or my experience, and made me lots of money. But it's because I built my team that I was able to do that. Now let's talk about the strategies. There are many ways to do real estate deals with OPM, but if you're in a hurry to make some money, the fastest way that I have found to work is the Assignment of Contract method. Here's what this means: you find and negotiate a deal with the seller, for a certain price with certain conditions, giving you so many days to find a buyer. Whether it's you or somebody else. When you're assigning the contract you're entering into with the same exact terms as you got into. This contract is where all the details are: How much you'll pay for the house (even though you're not going to pay for it personally), how long you have to come up with the money (This gives you the time to find the end buyer for the deal - another reason to build your team). Then when you find the buyer - you sell this contract to the buyer - with the same specified terms. So if you say that you'd close in 30 days, and it takes you 15 days to line up a buyer, you have 15 days to close. Or whatever other terms you stipulated in the contract. Preferably you're working with great deals, properties you can get for 70 or 80 cents on the dollar. And that's because you will ALWAYS find buyers for these deals. Once you have the seller under contract, you start promoting the deal through your network, list with a realtor, put an ad in the paper, whatever works. Then you have the seller, you have the buyer - you simply sell the contract. Once you get started and get your feet wet, you can do 3 or 4 or 5 of these a month - or as much as your team can handle. I've done many projects where I've sold the contracts for a flat fee to another investor or rehabber. It's a great way to build your bank account when you don't have a lot to start with. Like I said: Get Your MBA (Mega Bank Account) in Less Than 12 Months! |
